EON SE
DGAP-News: E.ON SE / Key word(s): Quarterly / Interim Statement/9-month figures E.ON increases nine-month earnings and narrows forecast range - Full-year 2018 adjusted EBIT and adjusted net income now expected to be in upper half of forecast range - Nine-month adjusted EBIT 11 percent above prior-year figure, adjusted net income up 25 percent - Economic net debt reduced significantly - First decisions made regarding planned integration of Innogy At the nine-month mark Essen-based energy company E.ON remains on course operationally, financially, and strategically. Adjusted EBIT of roughly EUR2.4 billion was 11 percent above last year's number (EUR2.1 billion), due in part to seasonal factors. Adjusted net income of EUR1.2 billion surpassed the prior-year figure of around EUR1.0 billion by 25 percent. Forecast for 2018 financial year affirmed At the presentation of E.ON's Quarterly Statement, E.ON CFO Marc Spieker affirmed the company's forecast for the 2018 financial year: "After three quarters our earnings were again higher. All the key figures and developments-primarily at our core businesses-Energy Networks, Customer Solutions, and Renewables-are fully in line with our plan, and we therefore affirm our forecast for full-year 2018." E.ON continues to expect the Group's full-year adjusted EBIT to be between EUR2.8 billion and EUR3.0 billion and its full-year adjusted net income to be between EUR1.3 billion and EUR1.5 billion. E.ON now anticipates that both earnings metrics will be in the upper half of their respective forecast range. Earnings benefit from special items The Energy Networks segment's sales of EUR9.1 billion were 29 percent below the prior-year figure of EUR12.9 billion. The primary factor in the decline was the application of a new International Financial Reporting Standard. Starting this financial year, renewables subsidies and other levies that are passed through are netted out in the company's income statement, which reduces both sales and costs of materials. This has no effect on operating earnings. This segment's adjusted EBIT of EUR1,472 million was roughly at the prior-year level of EUR1,503 million. Special items at E.ON's network business in Germany partially offset an anticipated decline in earnings due to regulatory factors. Adjusted EBIT in Sweden benefited from an improved gross margin in the power business, which resulted from tariff increases. This was partially offset by adverse currency-translation effects. Customer Solutions' sales of EUR15.8 billion were 2 percent above the prior-year figure of EUR15.5 billion. Its adjusted EBIT rose by 5 percent year on year, from EUR342 million to EUR360 million. A particularly significant contribution came from E.ON's customer solutions business in the German market. Earnings in the United Kingdom were at the prior-year level. However, nine-month earnings there benefited from a change in how costs are recorded. Sales at the Renewables segment rose by 7 percent, from EUR1.1 billion to EUR1.2 billion, primarily because of higher output due to the commissioning of new onshore and onshore wind farms. This segment's adjusted EBIT increased by 14 percent, from EUR248 million to EUR283 million. Earnings at Non-Core Business, which consists of PreussenElektra and the generation business in Turkey, totaled EUR314 million, 19 percent above the prior-year figure of EUR264 million. The increase is primarily attributable to improved earnings at the generation business in Turkey. Prior-year equity earnings on E.ON's stake in Enerjisa Üretim were adversely affected in particular by a book loss on the sale of a hydroelectric station. Adjusted EBIT reported under Corporate Functions/Other improved significantly year on year, owing in part to lower costs for personnel and materials as a result of the company's Phoenix reorganization program. Strong EBIT yields strong cash flow Operating cash flow of EUR3.5 billion was EUR6.6 billion above the prior-year level. The main reason for the increase is that in July 2017 E.ON paid EUR10.3 billion into Germany's public fund to finance nuclear-waste disposal. This amount was partially offset, among other items, by the roughly EUR2.85 billion nuclear-fuel-tax refund the company received in June 2017. Debt reduced further Compared with the figure at year-end 2017 (EUR19.2 billion), E.ON reduced its economic net debt by EUR3.9 billion, or 20 percent, to roughly EUR15.4 billion. This positive development is principally attributable to the proceeds from the sale of the company's Uniper stake. Further milestones reached in planned takeover of innogy Last week E.ON und innogy made the first major decisions regarding the planned integration of innogy. These decisions are to be implemented after the closure of the transaction, which is subject to the approval of the relevant regulatory agencies. After this, the new company will retain the name E.ON. A detailed brand architecture is being prepared. E.ON's and innogy's distribution system operators (DSOs) in Germany will retain their structure. Westnetz, a DSO in west-central Germany that is now is part of innogy, will be set up as a separate company analogous to E.ON's DSOs and thus strengthened. As currently, the new E.ON's corporate headquarters will focus on key management tasks so that the operating units have as much room for maneuver as possible and are even closer to customers. "These decisions will help ensure that the new E.ON is customer-oriented and can make an important contribution to the success of the energy transition and to climate protection in Europe," Marc Spieker said. "For this purpose, we want to further enhance our innovativeness as well. We therefore intend to establish an innovation team at corporate headquarters that works across our product ranges and markets and that can further improve our competitive position." In addition, E.ON and innogy agreed that the previously identified EUR600 to EUR800 million in synergies from 2022 forward can be leveraged. All planned integrations will be carried out in a socially responsible manner, in keeping with the strong tradition of the companies involved. For this reason, in May innogy, E.ON, and RWE, in consultation with their Group Works Councils, reached an Agreement in Principle on Collective Bargaining for Germany with the unions ver.di and IGBCE. This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties, and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to align them to future events or developments.
14.11.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| Language: | English |
| Company: | E.ON SE |
| Brüsseler Platz 1 | |
| 45131 Essen | |
| Germany | |
| Phone: | +49 (0)201-184 00 |
| E-mail: | info@eon.com |
| Internet: | www.eon.com |
| ISIN: | DE000ENAG999 |
| WKN: | ENAG99 |
| Indices: | DAX, EURO STOXX 50 |
| Listed: | Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange |
| End of News | DGAP News Service |
745489 14.11.2018
